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Ormat Technologies Reports Fourth Quarter and Year-End 2022 Financial Results



RENO, Nev., Feb. 22, 2023 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA), a leading geothermal, energy storage, solar PV and recovered energy power company, today announced financial results for the fourth quarter and full year ended December 31, 2022.


(Dollars in millions, except per share)Q4 2022 Q4 2021 Change (%) FY 2022 FY 2021 Change (%) 
GAAP Measures            
Electricity165.2 164.3 0.6%631.7 585.8 7.8%
Product32.2 20.3 58.2%71.4 46.9 52.2%
Energy Storage & Management Services8.1 6.4 27.3%31.0 30.4 2.1%
Total Revenues205.5 191.0 7.6%734.1 663.1 10.7%
Gross margin (%)            
Electricity43.5%44.1%  39.8%42.5%  
Product22.8%10.6%  15.3%11.8%  
Energy Storage & Management Services11.7%16.4%  21.0%33.0%  
Gross margin (%)39.0%39.6%  36.6%39.9%  
Operating income30.2 54.9 (44.9)%152.8 169.4 (9.8)%
Net income attributable to the Company’s stockholders18.0 18.9 (4.6)%65.8 62.1 6.0%
Diluted EPS ($)0.32 0.34 (5.9)%1.17 1.10 6.4%
Non-GAAP Measures 1            
Adjusted Net income attributable to the Company’s stockholders41.2 22.8 80.3%92.2 78.6 17.3%
Adjusted Diluted EPS ($)0.73 0.41 78.1%1.63 1.39 17.1%
Adjusted EBITDA1 124.7 116.0 7.5%435.5 401.4 8.5%

“The fourth quarter marked a strong finish to an excellent 2022, with 10.7% top-line growth across all three segments of our business. We continue to make progress toward our long-term goals, and during 2022 we added 78MW of new generating capacity to our operating portfolio. We also signed up to 365MW of Power Purchase Agreements (PPAs) and a tolling agreement with improved economics in the Electricity and Storage segments,” said Doron Blachar, Ormat’s Chief Executive Officer. “In addition, we see a notable recovery in the Product segment with considerably higher revenues, improved margins and new product contracts that increased our backlog to pre-Covid-19 levels demonstrating the growing global demand for geothermal energy.”

Blachar added, “As we look toward 2023, we expect to benefit from the contributions of new geothermal and solar power plants in our Electricity segment that started operation in the second half of 2022 and the addition of 170MW of new capacity that we expect to bring online during the year, of which 66 MW is in the Electricity segment and 104 MW is in the Storage segment. We also expect improved performance in our Product segment which is supported by a $148 million backlog.”

“We expect to deliver a 10% to 17% increase in 2023 Adjusted EBITDA, reaching between $480 to $510 million, supported by 170 MW of operating assets to be added during the year. On an annualized basis in the following years, these assets are expected to add between $25 to $30 million of additional adjusted EBITDA versus partial operation in 2023.

“We continue to see strong tailwinds globally for renewable energy supported by both the Inflation Reduction Act (IRA) benefits, which we expect will reduce our capital needs and boost our EPS in the coming years, as well the significant demand for geothermal energy and storage driven by surging fossil fuel prices and global decarbonization. We are on track with our capacity expansions in both the Electricity and the Storage segments, with the potential to add approximately 700 MW by the end of 2025. We expect this will have a positive impact on future top and bottom line as well as EBITDA growth. We firmly believe that our strategy, high-quality assets, and advantageous cost structure position Ormat to succeed in the current and future macro environment.”


  • Net income attributable to the Company's stockholders for the fourth quarter and for the year 2022 was $18.0 million and $65.8 million, respectively, a decrease of 4.6% and an increase of 6.0%, respectively, compared to last year. Diluted EPS for the fourth quarter and for the year 2022 was $0.32 and $1.17 per share, respectively, a decrease of 5.9% and an increase of 6.4%, respectively, compared to last year.
  • Adjusted net income attributable to the Company's stockholders and diluted adjusted EPS for the fourth quarter increased 80.3% and 78.1% compared to last year. Adjusted net income attributable to the Company's stockholders and diluted adjusted EPS for the full year 2022 increased 17.3% and 17.1% compared to last year. Adjusted net income attributable to the Company's stockholders and diluted adjusted EPS mainly excluded the $30.5 million pre-tax non-cash impairment charge from Brawley ($24.1 million or $0.43 per share after tax).
  • Adjusted EBITDA for the fourth quarter and for the year 2022 was $124.7 million and $435.5 million, respectively, an increase of 7.5% and 8.5%, respectively, compared to last year.
  • Electricity segment revenues increased 0.6% for the fourth quarter and 7.8% for the year compared to last year, supported by contributions from the new projects added, as well as higher capacity and rates observed at Puna. This increase was impacted by the shutdown of Heber 1 following the fire in early 2022.
  • We recorded in the fourth quarter of 2022 a non-cash impairment pre-tax loss of $30.5 million related to our Brawley power plant in California. We believe that we can operate the plant economically at 7 MW, or 6 MW lower than the current capacity. In addition, we are planning to add 35 MW solar plus storage facility adjacent to the geothermal projects and utilizing existing interconnection at the Brawley complex.
  • Heber 1 is experiencing a partial outage due to a fire in early 2022. We have decided not to rebuild the Heber 1 power plant and we settled the insurance claim related to the fire event including all business interruption and property damage claims. We are currently optimizing the Heber complex through a repowering, which is expected to be completed in the second quarter of 2023.
  • Product segment revenues increased 58.2% for the fourth quarter and 52.2% for the year compared to 2021, supported by contributions from newly signed contracts in Indonesia, Nicaragua, and New Zealand. Margins improved 1,220 basis points quarter over quarter.
  • Product segment backlog as of February 22, 2023, grew by approximately 8.0% compared to last quarter driven by a contract signed to supply equipment to the Ijen project in Indonesia. Backlog stands at $148.1 million as of February 22, 2023.
  • Energy Storage segment revenues increased 27.3% for the fourth quarter and 2.1% for the year compared to 2021, supported by higher rates at PJM. Revenue growth for the year comparatively offset by higher revenues from Rabbit Hill in February of 2021 as a result of elevated energy prices during the power crisis in Texas.


  • Signed a Financing Agreement with PT Sarana Multi Infrastruktur (Persero) (“SMI”) for the development of the Ijen Geothermal Power Plant in Indonesia. The Ijen power plant, which is controlled by our local partner, is expected to generate 31 MW by the end of 2024.


  • Total revenues of between $823 million and $858 million.
  • Electricity segment revenues between $670 million and $685 million.
  • Product segment revenues of between $120 million and $135 million.
  • Energy Storage revenues of between $33 million and $38 million.
  • Adjusted EBITDA to be between $480 million and $510 million.
    • Adjusted EBITDA attributable to minority interest of approximately $36 million.

The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three months and year ended December 31, 2022. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to high variability and complexity with respect to estimating certain forward-looking amounts. These include impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.


On February 22, 2023, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on March 22, 2023, to stockholders of record as of the close of business on March 8, 2023. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in each of the next three quarters.


Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, February 23, 2023, at 10:00 a.m. ET.

Participants within the United States and Canada, please dial 1-888-770-2286, approximately 15 minutes prior to the scheduled start of the call. If you are calling outside of the United States and Canada, please dial +1-646-960-0440. Access code for the call is 9122486. Please request the “Ormat Technologies, Inc. call” when prompted by the conference call operator. The conference call will also be accompanied by a webcast live on the Investor Relations section of the Company's website.

A replay will be available one hour after the end of the conference call. To access the replay within the United States and Canada, please dial 1-800-770-2030. From outside of the United States and Canada, please dial +1-647-362-9199. Please use the replay access code 9122486. The webcast will also be archived on the Investor Relations section of the Company's website.        


With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,200 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,158 MW with a 1,070 MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and an 88 MW energy storage portfolio that is located in the U.S.


Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “target”, “goal” or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for future operations and are based upon its management's current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under "Risk Factors" as described in Ormat’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022, and from time to time, in Ormat’s quarterly reports on Form 10-Q that are filed with the SEC.

These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Condensed Consolidated Statement of Operations
For the Three-and Twelve-Month periods Ended December 31, 2022, and 2021

 Three Months Ended December 31,Twelve Months Ended December 31,
 2022 2021 2022 2021 
 (Dollars in thousands, except per share data)
Electricity165,187 164,268 631,727 585,771 
Product32,177 20,340 71,414 46,920 
Energy storage8,122 6,381 31,018 30,393 
Total revenues205,486 190,989 734,159 663,084 
Cost of revenues:    
Electricity93,270 91,883 380,361 337,019 
Product24,835 18,194 60,479 41,374 
Energy storage7,171 5,336 24,495 20,353 
Total cost of revenues125,276 115,413 465,335 398,746 
Gross profit80,210 75,576 268,824 264,338 
Operating expenses:    
Research and development expenses1,388 950 5,078 4,129 
Selling and marketing expenses3,783 4,264 16,193 15,199 
General and administrative expenses14,119 15,501 61,274 75,901 
Business interruption insurance income   (248)
Impairment charge30,695  32,648  
Write-off of unsuccessful exploration activities1  828  
Operating income30,224 54,861 152,803 169,357 
Other income (expense):    
Interest income1,237 534 3,417 2,124 
Interest expense, net(23,841)(22,786)(87,743)(82,658)
Derivatives and foreign currency transaction gains (losses)(2,013)1,509 (6,044)(14,720)
Income attributable to sale of tax benefits7,540 7,928 33,885 29,582 
Other non-operating income (expense), net(197)174 (709)(134)
Income from operations before income tax and equity in earnings (losses) of investees12,950 42,220 95,609 103,551 
Income tax (provision) benefit8,778 (15,527)(14,742)(24,850)
Equity in earnings (losses) of investees, net(1,498)(4,420)(3,072)(2,624)
Net income20,230 22,273 77,795 76,077 
Net income attributable to noncontrolling interest(2,190)(3,368)(11,954)(13,985)
Net income attributable to the Company's stockholders18,040 18,905 65,841 62,092 
Earnings per share attributable to the Company's stockholders:    
Basic:0.32 0.34 1.17 1.11 
Diluted:0.32 0.34 1.17 1.10 
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:    
Basic56,077 56,033 56,063 56,004 
Diluted56,501 56,386 56,503 56,402 

Condensed Consolidated Balance Sheet
For the Periods Ended December 31, 2022 and 2021

 December 31, 2022 December 31, 2021
Current assets:   
Cash and cash equivalents95,872  239,278 
Marketable securities at fair value  43,343 
Restricted cash and cash equivalents130,804  104,166 
Trade128,818  122,944 
Other32,415  18,144 
Inventories22,832  28,445 
Costs and estimated earnings in excess of billings on uncompleted contracts16,405  9,692 
Prepaid expenses and other29,571  35,920 
Total current assets456,717  601,932 
Investment in unconsolidated companies115,693  105,886 
Deposits and other39,762  78,915 
Deferred income taxes161,365  143,450 
Property, plant and equipment, net2,493,457  2,294,973 
Construction-in-process893,198  721,483 
Operating leases right of use23,411  19,357 
Finance leases right of use3,806  6,414 
Intangible assets, net333,845  363,314 
Goodwill90,325  89,954 
Total assets4,611,579  4,425,678 
Current liabilities:   
Accounts payable and accrued expenses149,423  143,186 
Billings in excess of costs and estimated earnings on uncompleted contracts8,785  9,248 
Current portion of long-term debt:   
Limited and non-recourse (primarily related to VIEs):64,044  61,695 
Full recourse101,460  313,846 
Financing Liability16,270  10,835 
Operating lease liabilities2,347  2,564 
Finance lease liabilities1,581  2,782 
Total current liabilities343,910  544,156 
Long-term debt, net of current portion:   
Limited and non-recourse:521,885  539,664 
Full recourse:676,512  740,335 
Convertible senior notes420,805   
Financing liability225,759  242,029 
Operating lease liabilities19,788  16,462 
Finance lease liabilities2,262  4,361 
Liability associated with sale of tax benefits166,259  134,953 
Deferred income taxes83,465  84,662 
Liability for unrecognized tax benefits6,559  5,730 
Liabilities for severance pay12,833  15,694 
Asset retirement obligation97,660  84,891 
Other long-term liabilities3,317  4,951 
Total liabilities2,581,014  2,417,888 
Commitments and contingencies   
Redeemable noncontrolling interest9,590  9,329 
The Company's stockholders' equity:   
Common stock56  56 
Additional paid-in capital1,259,072  1,271,925 
Treasury stock, at cost(17,964) - 
Retained earnings623,907  585,209 
Accumulated other comprehensive income (loss)2,500  (2,191)
Total stockholders' equity attributable to Company's stockholders1,867,571  1,854,999 
Noncontrolling interest153,404  143,462 
Total equity2,020,975  1,998,461 
Total liabilities, redeemable noncontrolling interest and equity4,611,579  4,425,678 

Reconciliation of EBITDA and Adjusted EBITDA
For the three and twelve-month periods ended December 31, 2022, and 2021

We calculate EBITDA as net income before interest, taxes, depreciation, amortization and accretion. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and accretion, adjusted for (i) mark-to-market gains or losses from accounting for derivatives, (ii) stock-based compensation, (iii) merger and acquisition transaction costs, (iv) gain or loss from extinguishment of liabilities, (v) cost related to a settlement agreement, (vi) non-cash impairment charges; (vii) write-off of unsuccessful exploration activities; and (viii) other unusual or non-recurring items. We adjust for these factors as they may be non-cash, unusual in nature and/or are not factors used by management for evaluating operating performance. We believe that presentation of these measures will enhance an investor’s ability to evaluate its financial and operating performance. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. Our Board of Directors and senior management use EBITDA and Adjusted EBITDA to evaluate our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

Starting in the fourth quarter of 2022, we include accretion expenses related to asset retirement obligation in the adjustments to net income when calculating EBITDA and adjusted EBITDA. The presentation of EBITDA and adjusted EBITDA includes accretion expenses for the fiscal year ended December 31, 2022, however the prior years have not been recast to include accretion expenses as the amounts were immaterial.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the three and twelve-month periods ended December 31, 2022, and 2021:

 Three Months Ended December 31, Year ended
December 31,
 2022  2021  2022  2021 
 (Dollars in thousands) (Dollars in thousands)
Net income20,230  22,273  77,795  76,077 
Adjusted for:       
Interest expense, net (including amortization of deferred financing costs)22,604  22,252  84,326  80,534 
Income tax provision (benefit)(8,778) 15,527  14,742  24,850 
Adjustment to investment in an unconsolidated company: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla3,758  6,427  13,199  14,680 
Depreciation, amortization and accretion55,637  47,427  198,603  177,930 
EBITDA93,451  113,906  388,665  374,071 
Mark-to-market on derivative instruments(1,064) (355) 1,613  741 
Stock-based compensation3,017  2,328  11,646  9,168 
Make-whole premium related to long-term debt prepayment    1,102   
Reversal of a contingent liability related to a business combination transaction(1,829)   (1,829) (418)
Impairment of long-lived assets30,693    32,648   
Allowance for bad debt related to February power crisis in Texas    115  2,980 
Merger and acquisition transaction costs427  138  675  5,635 
Hedge losses resulting from February power crisis in Texas      9,133 
Tender-related deposits write-off      134 
Write-off of unsuccessful exploration activities    828   
Adjusted EBITDA124,695  116,017  435,463  401,444 

Reconciliation of Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS
For the Three and twelve-month periods ended December 31, 2022, and 2021

Adjusted Net Income attributable to the Company's stockholders and Adjusted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributable to the Company's stockholders and Adjusted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

The following tables reconciles Net income attributable to the Company's stockholders and Adjusted EPS for the three and twelve-month periods ended December 31, 2022, and 2021.

 Three Months Ended
December 31,
 Year Ended
December 31,
 2022 2021 2022 2021
GAAP Net income attributable to the Company's stockholders18.0 18.9 65.8 62.1
Hedge losses resulting from February power crisis in Texas   8.8
Impairment of long-lived assets24.3  25.8 
Write-off of unsuccessful exploration activities  0.7 
Sarulla tax asset write-off 3.9  3.9
Merger and acquisition transaction costs0.3  0.5 3.7
Reversal of a contingent liability related to a business combination transaction(1.4)  (1.4) 
Make-whole premium related to repayment of long-term debt  0.8 
Adjusted Net income attributable to the Company's stockholders41.2 22.8 92.2 78.6
GAAP diluted EPS0.32 0.34 1.17 1.10
Hedge losses resulting from February power crisis in Texas   0.16
Impairment of long-lived assets0.43  0.46 
Write-off of unsuccessful exploration activities  0.01 
Sarulla tax asset write-off 0.07  0.07
Merger and acquisition transaction costs0.01  0.01 0.07
Reversal of a contingent liability related to a business combination transaction(0.03)  (0.03) 
Make-whole premium related to repayment of long-term debt  0.01 
Diluted Adjusted EPS ($)0.73 0.41 1.63 1.39

Ormat Technologies Contact:
Smadar Lavi
VP Head of IR and ESG Planning & Reporting
775-356-9029 (ext. 65726)
Investor Relations Agency Contact:
Sam Cohen or Joseph Caminiti
Alpha IR Group

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